Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132) authorizes the President to impose an import surcharge of up to 15% ad valorem — or quantitative restrictions, or both — for up to 150 days to deal with large and serious United States balance-of-payments deficits, to prevent a significant dollar depreciation, or to cooperate with other countries in correcting an international balance-of-payments disequilibrium.
Section 122 is one of the few standing presidential authorities that allows broad, across-the-board tariffs without a prior investigation or industry-specific finding. Key features:
- Cap — Surcharge cannot exceed 15% ad valorem
- Duration — Maximum 150 days; extension requires congressional action
- Scope — Can apply broadly or to specific articles or countries
- Trigger — Requires a presidential determination that a balance-of-payments emergency exists
Section 122 has historically been treated as a dormant authority — the underlying surcharge mechanism dates from the Bretton Woods era. In 2025, after federal courts narrowed the use of IEEPA tariffs through litigation in Trump v. CASA and V.O.S. Selections v. Trump, Section 122 came back into active discussion as a 150-day "bridge" authority to maintain reciprocal tariff coverage while the administration sought permanent statutory backing.
Because of the 150-day cap, Section 122 cannot serve as a long-term tool — but it gives the executive a fast on-ramp during emergencies or while other trade remedies are being put in place.